The Hungarian competition authority, Gazdasági Versenyhivatal (GVH), has concluded an investigation into Temu, an online marketplace operated by Whaleco Technology Limited, resulting in significant financial compensation for consumers.

As part of the settlement, Temu will refund at least 882 million forints to Hungarian consumers and pay an additional fine of 437 million forints to the central budget. The company has also committed to implementing a comprehensive compliance program to ensure fair trading practices.

The investigation, initiated in March 2024, revealed that Temu engaged in several unfair commercial practices, including misleading pricing strategies and deceptive promotional claims. The GVH found that Temu falsely created the impression of price reductions and failed to substantiate claims of discounts up to 95%.

Whaleco cooperated fully with the GVH during the investigation, acknowledged the violations, and waived its right to appeal. The company will also provide 2000 forints in cash compensation to each Hungarian consumer who made purchases on the Temu platform between November 2023 and September 2024.

Consumers will receive a dedicated activation link via email to submit their bank details or relevant information for alternative payment methods. If the total refunds do not reach 882 million forints, Whaleco will be required to pay the difference as a fine to the central budget.

The GVH has extensive experience in investigating global online platforms, having previously secured compensation for consumers from other companies like Wish and About You. The authority will monitor the implementation of the compliance program and consumer compensation over the next year.